Groupon File For IPO: $750 Million Price Tag

Last week here at OSM we brought you news about Mark Zuckerberg declaring that Facebook was not quite ready to venture into an IPO, although this may have been a smart move for his company we have recently seen other companies like LinkedIn and Zynga take this plunge.

Judging by both these companies recent success in this transition it seems that we could possibly see a new wave of Web start-ups following their lead, one company that has recently decided to also take this route is Groupon, a short time ago the company filed for an initial public offering and are looking to raise $750 million.

According to a post from Reuters.com the company filed for an IPO on Thursday, this filing did not specify the number of shares to be sold nor did it go into detail on the exchange or price range. Two things that were made clear are that shares would trade under the symbol “GRPN” and the outlined figure of $750 million is preliminary and likely to change.

Back in April Reuters tell us that a source spoke to them about the possibilities of how much Groupon could raise, there were talks that the company could raise as much as $1 billion in an IPO taking the value of the company to a massive $15 to $20 billion.

However some disagree with this figure and believe that the company could be majorly overvalued, recently the company has been scrutinized by critics who say its business could be easily replicated by both existing companies and new start-ups. What are your thoughts on this?

Do you think this is the right move for Groupon?

Let us know your thoughts by sharing your comments with us below